When to buy and Sell using Dow Theory?

[VaibhaV SeshananD]

BUY – Higher Bottom – Higher top with high volume, buy at previous top and stop loss at previous bottom.

SELL- Lower Top – Lower bottom with high volume, sell at previous bottom and stop loss at previous top.

[Vishal Rath]

We should buy when demand is greater than supply.

We should sell when supply is greater than demand.

[Vijayavani]

We can buy a stock if it has bullish trend that is higher bottom – higher top sequence, provided higher volumes traded. We can buy the stock at previous top price, stop loss at previous bottom price.

We can sell a stock if it has bearish trend, that is lower top- lower bottom, provided higher volumes traded. We can sell the stock at previous bottom price, stop loss at previous top price.

[S Suresh]

Using Dow Theory when it creates a higher bottom and higher top and it has bullish trend and higher volumes that is the signal to buy. Using Dow Theory when it creates a lower top and lower bottom and when it has bearish trend and high volumes are traded, then it is time to sell.

[Rajesh kumar]

Buy – Higher bottom and Higher Top with high volume is a bullish trend. Here we can create a long position to buy and sell the stocks

Sell – Lower Top and Lower Bottom with high volume is a bearish trend.  Here we can create a short position to sell and buy the stocks

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